Nokia, the Finnish telecom equipment manufacturer, witnessed a substantial 69% decline in sales in India, amounting to 265 million euros in the March quarter. This decline was primarily linked to the deceleration in 5G deployment activities across the country. In comparison, the company had achieved net sales of 853 million euros in the corresponding period of the previous year.
In a statement, Nokia mentioned that the drop in net sales in the Asia Pacific (APAC) region, particularly in India, was notably influenced by reduced sales in Mobile Networks and Network Infrastructure sectors. The company clarified that the reduction in India's net sales was a result of the normalization of 5G investments in the region following significant deployments in the same quarter of the previous year. Furthermore, the decrease in spending levels in India and North America collectively contributed to a 37% decrease in sales of Nokia's mobile network globally.
Nokia's President and CEO, Pekka Lundmark, acknowledged the anticipated slower pace of spending in India post the rapid 5G rollout witnessed in the first half of 2023. Despite the challenges faced in India, the company affirmed that its expectations for the country's performance for the entire year remain unchanged. Overall, Nokia's net sales experienced a 20% decline to 4.6 billion euros in the reported quarter compared to 5.85 billion euros in the previous year.